Pay VAT deferred due to coronavirus

International Association of Bookkeepers - Bookkeeping Qualifications, Bookkeeping Study and exams

The government has updated its advice for those businesses that deferred VAT payments due between 20 March and 30 June 2020 and still have payments to make.

They can:

  • pay the deferred VAT in full, on or before 31 March 2021.
  • join the VAT deferral new payment scheme – the online service is open between 23 February and 21 June 2021.
  • contact HMRC on 0800 024 1222 by 30 June if they need extra help to pay.

But HMRC is warning that companies may be charged interest or a penalty if they do not:

  • pay the deferred VAT in full by 31 March 2021.
  • opt into the new payment scheme by 21 June 2021.
  • agree extra help to pay with HMRC by 30 June 2021.

The VAT deferral new payment scheme will be open from 23 February up to and including 21 June 2021.

Companies on the VAT Annual Accounting Scheme or the VAT Payment on Account Scheme will be invited by HMRC to join the new payment scheme in March 2021.

The new scheme allows them to pay deferred VAT in equal instalments interest free, and choose the number of instalments (from two to 11, depending on when they join).

Companies can still join the scheme even if they have a Time to Pay arrangement for other HMRC debts and outstanding tax.

For full details go to https://tinyurl.com/5jgw1adk

Government sets up ‘Pay as You Grow’ flexible loan repayment

International Association of Bookkeepers - Bookkeeping Qualifications, Bookkeeping Study and exams

Businesses that took out government-backed Bounce Back Loans to get through Covid-19 will now have greater flexibility to repay their loans.

The Treasury’s Pay as You Grow repayment flexibilities enable borrowers to tailor their repayment schedule, with the option to extend the length of their loans from six to ten years (reducing monthly repayments by almost half), make interest-only payments for six months or pause repayments for up to six months.

The Chancellor has now extended the flexibility of the third option, which will now be available to all from their first repayment (rather than after six repayments have been made). This will mean that businesses can choose to make no payments on their loans until 18 months after they originally took them out.

These Pay as You Grow options will be available to more than 1.4 million businesses which took out a total of nearly £45 billion through the Bounce Back Loan Scheme.

This is in addition to the government covering the costs of interest for the first year of the loan.

80% of small business owners ‘experiencing poor mental health’

International Association of Bookkeepers - Bookkeeping Qualifications, Bookkeeping Study and exams

Four in five small business owners report experiencing symptoms of poor mental health at least a few times a year, according to a new study by Mental Health UK and the small business lender iwoca.

The research also found that the Covid-19 crisis has made this more acute, with people reporting panic attacks and experiencing symptoms of depression more frequently since the pandemic began.

Some 86% of female business owners reported experiencing poor mental health, compared with 77% of males. Despite this, 44% of small business owners have never accessed mental health support.

An inability to focus (66%) was most commonly reported by small business owners, followed by the anxiety (64%) and disrupted sleep (63%). Almost a quarter (24%) have panic attacks and 37% experience symptoms of depression.

More than a fifth or respondents (22%) stated that they often shut off and disengage from others when experiencing mental health issues, with just one in four (25%) having accessed professional help. When pressed on why they hadn’t sought help, just under a third (31%) of owners said they didn’t know where to go for help or were unaware support existed.

  • For more information and to find details of where to get help and advice go to https://mentalhealth-uk.org/

Back to Basics videos: the trial balance

International Association of Bookkeepers - Bookkeeping Qualifications, Bookkeeping Study and exams

PQ magazine – the UK’s leading publication for accountancy and bookkeeping trainees – has joined forces with Training Link’s Michele Butler to help students get to grips with the trial balance.

In just six short minutes she explains how to create the trial balance and why you are doing it. Michele will let you know whether a balance is a credit or debit, and help you get to grips with ‘DEAD CLIC’.

Check out the latest in the series at: https://vimeo.com/500074449. Students can also use the same link to access a Back to Basics video explaining double entry bookkeeping.

Friday Roundup Podcast 12th February 2021

International Association of Bookkeepers - Bookkeeping Qualifications, Bookkeeping Study and exams

The news from the week ending 12th February 2021

Janet Jack – CEO
Sarah Palmer
 – COO
Simon Jordan – Marketing

Below are the notes from the podcast

On this week’s Friday Roundup we have…

Simon

  • Talks about our guest on this week’s coffee morning and a huge turnout!
  • Hannah from Xero

Janet

  • The continuing success of the roll-out of the National Ambassador Program so get involved
  • Mind the Gap – upcoming webinar 2nd March
  • Podcast with George Batts MBE

Sarah

  • While we wait for the Budget…
  • Support for company directors
  • Deferred Vat Payments
  • Reverse charge vat – CIS
  • BBL repayments extended

 

Simon

  • Further details about how to become an IAB Ambassador or group member – we now have 6 Ambassadors
  • How to access the AML Webinar – Mind the Gap  on Tuesday 2nd March 10 am www.IAB.org.uk/AMLWebinar available after the recording
  • Charity event – www.IAB.org.uk/Normandy-memorial
  • Our IAB Awards event – www.IAB.org.uk/Awards
    5 Categories available
    • Bookkeeper of the Year
    • Accountant of the Year
    • Payroll Professional of the Year
    • Student of the Year
    • Tutor of the Year